Class Representatives Who Settled in Class Action Lawsuit Still Have Standing to Appeal De-certification of Class.

In an appeal of the de-certification of a class action lawsuit, the Seventh Circuit Court of Appeals denied a motion to dismiss the appeal for lack of jurisdiction, finding that the plaintiffs/appellants, who settled with the defendants after de-certification, still had standing to appeal.

In Espenscheid v. DirectSat, LLC, three plaintiffs claimed that they were entitled to an “incentive award” or “enhancement fee” for serving as class representatives, but only if the case was certified as a class action.  This gave them an ongoing stake in the litigation, they argued, and therefore gave them standing to appeal decertification. The court agreed, finding that dismissing their appeal on standing grounds would not serve judicial economy, as another class member could simply step in and appeal.  To read the court’s full opinion, click here.

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